1. Eastern Africa Submarine Cable System (EASSy) CLOSING THE FINAL LINK AROUND AFRICA

2. 2 Overview Introduction Introduction Current Scenario Current Scenario The Opportunity The Opportunity System Configuration and Global Connectivity System Configuration and Global Connectivity Potential Investors Potential Investors Key features of the proposed System Key features of the proposed System Benefits to Africa Benefits to Africa Project Costs Project Costs Project Status Project Status Planned Project Milestones Planned Project Milestones

3. Eastern Africa Submarine Cable System3 Introduction Liberalisation of the telecommunications sector has led to evolution of internet, VOIP, mobile market & integrated network solutions. Liberalisation of the telecommunications sector has led to evolution of internet, VOIP, mobile market & integrated network solutions. It is therefore necessary that an appropriate infrastructure is developed to carry the rapidly increasing traffic. It is therefore necessary that an appropriate infrastructure is developed to carry the rapidly increasing traffic. The Eastern Africa Submarine Cable System has been conceived in this context. The Eastern Africa Submarine Cable System has been conceived in this context.

4. 4 Current Scenario West Africa covered by SAT-3/WASC & Atlantis-2 West Africa covered by SAT-3/WASC & Atlantis-2 Currently no other cable initiative for East Africa Currently no other cable initiative for East Africa Eastern Africa Region exclusively reliant on Satellite Eastern Africa Region exclusively reliant on Satellite Limited satellite capacity, earth station and terrestrial infrastructure in region Limited satellite capacity, earth station and terrestrial infrastructure in region Increase in demand for intra-regional and global connectivity, data services and VOIP Increase in demand for intra-regional and global connectivity, data services and VOIP Low demand for telecommunications systems globally – buyers-market in submarine cable industry! Low demand for telecommunications systems globally – buyers-market in submarine cable industry!

5. Eastern Africa Submarine Cable System5 Current Scenario NEPAD has identified and endorsed the East African cable as a priority project. NEPAD has identified and endorsed the East African cable as a priority project. The proposed East African Submarine Cable will provide the last link to completely encircle Africa by high capacity optic fibre telecommunications networks The proposed East African Submarine Cable will provide the last link to completely encircle Africa by high capacity optic fibre telecommunications networks

6. Eastern Africa Submarine Cable System6 The Opportunity Hi quality broadband international connectivity reaching Madagascar, Eastern & Southern Africa Hi quality broadband international connectivity reaching Madagascar, Eastern & Southern Africa Restoration for EASSy via existing submarine cables such as SAFE, Sea-Me-We-3, SAT-3 Restoration for EASSy via existing submarine cables such as SAFE, Sea-Me-We-3, SAT-3 Access to untapped emerging markets in voice, mobile and Internet traffic Access to untapped emerging markets in voice, mobile and Internet traffic Reduce Regions dependency on Satellite Reduce Regions dependency on Satellite Lower network costs at higher bandwidth Lower network costs at higher bandwidth

7. Eastern Africa Submarine Cable System7 Mahajanga Mtunzini Zanzibar Eastern Africa Submarine Cable System (EASSy)

8. Eastern Africa Submarine Cable System8 Zanzibar Malaba

9. Eastern Africa Submarine Cable System9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 21 24 25 20 22 23 SEA ME WE 3 SAFE SAT-3/WASC Global Connectivity

10. GermanyPortugalBrazilSenegal South Africa EgyptMalaysiaAustraliaJapan SEA-ME-WE-3 (35Countries ) SAFE (5 Countries) ATLANTIS-2 (6 Countries) SAT-3 / WASC (11 Countries ) 56 Countries India EASSy (11 Countries) Strategic Global Coverage

11. Eastern Africa Submarine Cable System11 Investment Interest The following (11) parties have signed the Memorandum of Understanding (MOU) for the development of the system: The following (11) parties have signed the Memorandum of Understanding (MOU) for the development of the system: Telkom Kenya Telkom Kenya Zanzibar Telecom Zanzibar Telecom Uganda Telecom Uganda Telecom MTN Uganda MTN Uganda TDM Mozambique TDM Mozambique Telkom South Africa Telkom South Africa Djibouti Telecom Djibouti Telecom Sentech Sentech Telecom Malagasy Telecom Malagasy Rwanda Telecom Rwanda Telecom Botswana Telecom Botswana Telecom

12. Eastern Africa Submarine Cable System12 Signed LOI & C&NDA Swaziland Swaziland Lesotho Lesotho Ethiopia Ethiopia Not Signed LOI&C&NDA Zambia Zimbabwe Eritrea Sudan Seychelles Burundi DR Congo Somalia Comoros Potential Participants from other African Countries

13. Eastern Africa Submarine Cable System13 Potential International Investors The following International Carriers among others have shown interest in the project and their participation is expected in the form of investment. Belgacom – Belgium, BT - UKBelgacom – Belgium, BT - UK Teleglobe – Canada,Telenor - NorwayTeleglobe – Canada,Telenor - Norway AT&T & MCI - USAAT&T & MCI - USA France Telecom,KPN - NetherlandsFrance Telecom,KPN - Netherlands Cable & Wireless and Telekom MalaysiaCable & Wireless and Telekom Malaysia

14. Eastern Africa Submarine Cable System14 Key Features of the System The completion of an optic fibre ring around Africa in conjunction with other optic fibre submarine cable systems The completion of an optic fibre ring around Africa in conjunction with other optic fibre submarine cable systems The first optic fibre connectivity between Eastern Africa and the global optic fibre network The first optic fibre connectivity between Eastern Africa and the global optic fibre network A superior optic fibre connectivity utilizing Synchronous Digital Hierarchy, direct Optical Amplification and Wavelength Division Multiplexing technology A superior optic fibre connectivity utilizing Synchronous Digital Hierarchy, direct Optical Amplification and Wavelength Division Multiplexing technology High capacity High capacity Superior quality Superior quality Cost-effective alternative transmission medium Cost-effective alternative transmission medium Provides excellent diversity and restoration options for the users Provides excellent diversity and restoration options for the users

15. 15 Dar Es Salaam (Tanzania)DjiboutiMogadishu(Somalia) Mtunzini (South Africa) Maputo(Mozambique) Mahajanga(Madagascar) Zanzibar(Tanzania) Mombasa(Kenya) Repeaterless Optional link Repeaterless Optional link Optional Branch and BU Configuration

16. Eastern Africa Submarine Cable System16 Technical Description System length 8 840 km System length 8 840 km Dense Wavelength Division Multiplexing Technology (DWDM) Dense Wavelength Division Multiplexing Technology (DWDM) Direct Optical Amplification Technology Direct Optical Amplification Technology Additional feeder network through repeaterless festoon systems, if required Additional feeder network through repeaterless festoon systems, if required 2 fibre pair system configured as a collapsed ring 2 fibre pair system configured as a collapsed ring Proposed ultimate capacity per fiber pair Proposed ultimate capacity per fiber pair 16 or 32 wavelengths at 10 Gbit/s 16 or 32 wavelengths at 10 Gbit/s Total capacity of 320 or 640 Gb/s Total capacity of 320 or 640 Gb/s Initial equipage: 1 or 2 wavelengths per fiber Initial equipage: 1 or 2 wavelengths per fiber System design life of 25 years. System design life of 25 years.

17. Eastern Africa Submarine Cable System17 Benefits to Africa Improved high capacity optic fibre connectivity within Africa and the rest of the world. Improved high capacity optic fibre connectivity within Africa and the rest of the world. Enables new services and products not possible before due to bandwidth restrictions Enables new services and products not possible before due to bandwidth restrictions Contributes towards the socio-economic development of the region Contributes towards the socio-economic development of the region Reduced unit costs (capital and operational) for global connectivity, leading to increased profits Reduced unit costs (capital and operational) for global connectivity, leading to increased profits Reduced out payments to foreign telecommunications (satellite) facility providers. Reduced out payments to foreign telecommunications (satellite) facility providers. Direct routes through own infrastructure obviate the need for transits through Third Parties - reduced out payments. Direct routes through own infrastructure obviate the need for transits through Third Parties - reduced out payments. Expansion in inter-Africa trade, facilitated by better communication in the region. Expansion in inter-Africa trade, facilitated by better communication in the region.

18. Eastern Africa Submarine Cable System18 Project Costs Project cost for a system from SA to Djibouti estimated at US$200 Million Project cost for a system from SA to Djibouti estimated at US$200 Million This includes US$170 million for the System Supply and US$30 million for project management This includes US$170 million for the System Supply and US$30 million for project management The above excludes the cable station building and ancillary services which is estimated at US$2Million each. The above excludes the cable station building and ancillary services which is estimated at US$2Million each. There are planned 8 cable stations at Mtunzini - South Africa, Mahajanga - Madagascar, Maputo-Mozambique, Dar es Salaam and Zanzibar –Tanzania, Mombasa – Kenya, Mogadishu – Somalia and Djibouti – Djibouti. There are planned 8 cable stations at Mtunzini - South Africa, Mahajanga - Madagascar, Maputo-Mozambique, Dar es Salaam and Zanzibar –Tanzania, Mombasa – Kenya, Mogadishu – Somalia and Djibouti – Djibouti.

19. Eastern Africa Submarine Cable System19 Project Status Initial feasibility study completed Initial feasibility study completed MOU signed by eleven (11) parties. MOU signed by eleven (11) parties. Project Management Committee (PMC) and Working Groups formed. Project Management Committee (PMC) and Working Groups formed. PMC chairman and Working Group Team Leaders appointed. PMC chairman and Working Group Team Leaders appointed. Tasks in the next phase are as follows: Tasks in the next phase are as follows: Carrying out detailed feasibility study Carrying out detailed feasibility study Developing the project financing model Developing the project financing model Drafting of Construction & Maintenance Agreement Drafting of Construction & Maintenance Agreement Invitation of tenders for supply of System Invitation of tenders for supply of System

20. Eastern Africa Submarine Cable System20 Project Management Committee PMC Chairman – Telkom Kenya PMC Chairman – Telkom Kenya Project Secretariat - Telkom Kenya Project Secretariat - Telkom Kenya Project Coordinator - Zanzibar Telecom Project Coordinator - Zanzibar Telecom Commercial &Finance WG Leader - Uganda Telecom Commercial &Finance WG Leader - Uganda Telecom Interim Procurement WG Leader – Telkom South Africa Interim Procurement WG Leader – Telkom South Africa Construction &Maintenance Agreement WG Leader – TDM Mozambique Construction &Maintenance Agreement WG Leader – TDM Mozambique Backhaul Coordination WG - NEPAD Backhaul Coordination WG - NEPAD

21. Eastern Africa Submarine Cable System21 Planned Project Milestones Sign MOUQ4 2003 Sign MOUQ4 2003 Agree on Configuration Q2 2004 Agree on Configuration Q2 2004 Issue Invitation to TenderQ3 2004 Issue Invitation to TenderQ3 2004 Financial ClosingQ4 2004 Financial ClosingQ4 2004 Sign Supply Contract & C&MAQ2 2005 Sign Supply Contract & C&MAQ2 2005 Cable RFCSQ4 2006 Cable RFCSQ4 2006

22. Eastern Africa Submarine Cable System22 The successful implementation of the East African Submarine Cable System is expected to make significant contribution to the development and provision of ICT services and facilitate the intra- regional as well as international trade. Conclusion

23. Eastern Africa Submarine Cable System23 The End